Washington’s insurance commissioner issued more than $500,000 in fines for insurance law violations, including $250,000 against an unlicensed insurer and $30,000 for illegal pet insurance sales.
Between January and April, Washington Insurance Commissioner Patty Kuderer issued $510,500 in fines for violations of state insurance laws.
Unlicensed Insurer Fined $250,000
United Benefits Partnership Group was fined $250,000 for acting as an unauthorized insurer by offering unqualified ERISA health plans between 2018 and 2019. The company claimed its plans were for general partners within the organization, but purchasers confirmed that they were not employees or working partners and performed no employee-like services. Plans were marketed online, with premiums ranging from $139 to $1,2000 monthly.
Petcube and Vets Plus More Fined $30,000 for Illegally Selling Pet Insurance
Petcube Inc. and Vets Plus More were fined a combined $30,000 for selling unauthorized pet insurance products under their name “Emergency Vet Protect Club.” Petcube advertised the program as “pet insurance” on their website, and Vets Plus More, which offered the coverage, claimed it was a telehealth membership. The OIC determined that EVPC met the insurance definition and had not been approved. Vets Plus More had 113 subscriptions, collecting $7,407 in premiums, while Petcube earned $17,787 in revenue.
Other fines included:
ASI Underwriters Corp, St. Petersburg, Florida.; fined $16,000
ASI Underwriters acted as a managing general agent without insurer designation or appointment.
American Strategic Insurance Corp., Carmel Indana, Fined $16,000
The company acted as a managing general agent without the proper insurer designation or appointment.
Acrisure, LLC, Grand Rapids, Michigan; Christopher Felton, California; Larry Gregg, Washington, Fined $25,000
Acrisure, doing business as Falcon Insurance, failed to notify the OIC of its use of an assumed name. Arcisure and Gregg accepted business from an unlicensed producer, while Felton transacted insurance business without a license.
Central States Indemnity Company of Omaha, Nebraska, fined $30,000
The company sold insurance policies for irrigation equipment without filling out the necessary forms and rates.
Dentegra Insurance Company, Wilmington, Deleware, fined $25,000
Violations included failing to use legal names, listing incorrect or missing NAIC numbers, and submitting late responses to consumer complaints.
Farmers Property and Casualty Insurance Company, Warwick, R.I., fined $50,000
Applied incorrect protection class factors on 3,015 homeowner policies between March 2022 and January 2023, impacting customer premiums.
Maple Shade Assurance, LLC, Nashville, Tennessee, fined $5,000
Operated as a captive insurer in Washington without registering with the Insurance Commissioner’s Office.
St. Olaf College, Northfield, Minnesota, fined $3,500
Issued charitable gift annuities without filling required documentation or obtaining prior approval from the OIC.
Bastian Bluming, Spokane, Washington, fined $500
Gordon Tilden Thomas & Cordell, fined $500
The Insurance Commissioner’s Office has assessed more than $42 million in fines since 2001. The money is directed to the state’s general fund to pay for state services.
Topics Carriers Washington
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